NEW YORK, June 23: Cotton futures finished lower Friday on speculative sales as players eyed the start of deliveries in the spot contract next week, analysts said.

The New York Board of Trade's open-outcry July cottoncontract > fell 0.61 cent to conclude at 55.89 cents per lb, moving from 55.30 to 56.20 cents. On Thursday, the contract closed at 56.50 cents in the highest finish for cotton on a spot basis since late February.

The benchmark December cotton contract eased 0.53 cent to end at 60.97 cents, having dealt from 60.35 to 61.30 cents. The back months shed from 0.50 to 0.72 cent.

This is a minor dip, said Mike Stevens, an analyst for brokers SFS Futures in Mandeville, Louisiana. We're probably going to go higher. Stevens said players who missed out when the market surged to its highest level in three months are waiting for any dip in futures to step into the ring.

He added the market lost some ground as players balancedtheir positions before deliveries in July begin. Open interest in July declined 3,583 lots to 5,084 lots as of June 21 while interest in December increased 1,962 to 155,803 lots.

Dealers said open interest in July will probably stand ataround 1,500 to 2,000 lots when notices are first posted on Monday.

Analysts said that once July deliveries are given out, the focus of the trade will turn to a key plantings report being released by the US Agriculture Department on Friday. Brokers Flanagan Trading Corp. sees resistance in the December contract at 62 and 62.75 cents, with support at 59.80 and 58.75 cents.

Floor dealers said final estimated open-outcry volume stood at 8,500 lots, from the prior volume of 17,352 lots.—Reuters